IRS releases a potpourri of ACA guidance

The IRS has released guidance covering an assortment of issues under the Affordable Care Act (ACA), including how certain cafeteria plan flex contributions affect affordability, adjustments to the affordability safe harbors and penalty relief for failing to file correct Forms 1095-C/1094-C or 1095-B/1094-B. (Notice 2015-87, IRB 2015-52)

Information reporting penalties. According to the IRS, if you make a good-faith effort to comply with the information reporting requirements, you won’t be penalized if your forms are incorrect or incomplete. Watch out: The notice doesn’t define what counts as a good-faith effort. Even so, if you can’t meet this good-faith standard, you may still be eligible for penalty relief if you have reasonable cause for your errors.

Affordability safe harbors. Group benefits are considered affordable to employees if they don’t exceed 9.66% (for 2016) of their household income. Since you don’t know employ...(register to read more)

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